prezentace z ecommerce trends cee 2014

Challenges and Differences in Czech and Slovak E-Commerce

Jan Penkala, CEO www.acomware.eu

Agenda

• People

• Turnover and market growth

• Biggest e-shops

• Major portals for e-commerce

• Interesting segments

• Study of retailer attitudes to the internet

• Entering the Czech market – specificities

• Online marketing

• Common characteristics/blending of CZ and SK market

People

CZ SK

Population 10.5 mio 5.4 mio

Population with internet access

6.5-7 mio 3.5-4 mio

Smartphone users 2.2 mio 1 mio

Have shopped online

98 % 96 %

Shop online at least 1 per month

40 % 25 %

Largest group 35-44 years olds, 25-34 years olds

15-24 years old, 25-34 years old

Data source: TNS Digital Life, Netmonitor

Turnover and market growth

CZ SK

Total online turnover 2.5 bil € 350 mio €

Annual increase 15 % 20-30 %

Share in retail revenue 8 % 2 %

Number of e-shops 35 000 8 000

Number of e-shops that „really mean it“

6 000 1 000

Data source: APEK, Pricemania.sk, Heureka.cz

Biggest e-shops

Biggest CZ e-shops Revenue SK

Alza.cz 400 mio € E-shops from CZ: Alza, Mall, Hej.sk, Okay, Parfums

Mall.cz (Netretail Holding)

285 mio € Shoppie.sk (NAY)

HP Tronic (Euronics, eProton, Kasa.cz)

125 mio € Interesting local brands: Martinus.sk, Muziker.sk, Shark.sk, TPD.sk, Parfems.sk

Parfums.cz

90 mio €

Major portals for e-commerce

Price comparators

Monthly attendance

Price comparators

Monthly attendance

Heureka.cz 2.7 mio Heureka.sk 1.3 mio

Zbozi.cz 1.7 mio Najnakup.sk 0.3 mio

Hyperinzerce.cz 0.8 mio Pricemania.sk 0.2 mio

Aukro.cz 1.5 mio

Attendance in 8/2014 – real users est., data source: Netmonitor.cz, aimmonitor.sk

Comparator of discount offers

Skrz.cz 0.9 mio Odpadnes.sk 0.3 mio

Comparator of retail discount offers

Kupi.cz 0.6 mio

Akcniceny.cz 0.5 mio

Verticals with most significant online presence

CZ SK

Electronic goods, photography, mobiles

Electronic goods, photography

Books, toys Tyres

Sports equipment Perfumes, cosmetics

Furniture, garden Books

Perfumes, cosmetics

Tyres

Highest growth potential by verticals

CZ SK

Grocery, drugstore Fashion

Apparel, footwear Grocery, Drugstore

DIY, hobby Hobby

Furniture

Study of retailer attitudes to the internet

Entering the Czech market - specifites

• High competition

• Price war

• Brand is important

• Margins in retail and online

• Stronger biggest players and the smallest one

• Multichannel in logistics, customer service and communication with customers - also in web accesses

• 2014: grocery started to be sold online

Online marketing – Czech market

• PPC works very well

• CPT display campaigns at Seznam.cz work quite well

• RTB relatively developed

• SEO is more complicated

• Facebook – narrow target groups, Twitter, LinkedIn – small penetration

• Emailing – still efficient despite of „mass emails“

• Affiliate – strong position of CJ, total turnover is rather small

• Aukro (Allegro) maintains its position – transition from C2C to B2C and brand shops, Ebay + Amazon in minority

• Google Analytics, about 20 e-shops may have Omniture/Webtrekk

• TV campaigns work relatively well for the biggest players

Social and RTB

Data source: advertising tools, Adform report 8/2014

CZ SK

Twitter 190 000 80 000

Facebook 4 mio 2.2 mio

Linkedin 440 000 85 000

RTB inventory CZ SK

Facebook 4198 mio 5350 mio

Double Click (Google)

2595 mio 1146 mio

Other networks (Admeta, Rubicon)

5333 mio 1155 mio

Common characteristics/blending of CZ and SK market

• Many e-shops expand from CZ to SK, only several shops in reverse

• 10-30% level of CZ turnovers in SK

• Ratio of personal pick-ups is rather high – company branches, showrooms, outsourced branches, distribution points at newsagents’, sellers’ depots

• Payment method: pay on delivery

• Mobile payments, credit cards, PayPal

• Certificate „Certified by customers“ at Heureka.cz/sk

• AdWords is slightly more efficient in Slovakia

• RTB more developed in CZ, media are relatively more expensive in SK

• Responsive web/mobile app is convenient but not necessary

Thank you for your attention!

More information www.acomware.cz and www.acomware.eu

Let’s follow @acomware and my personal @inteligentemail

Your Q and my A: jan.penkala@acomware.cz